Mauritius’ financial major MCB sees half-year group profits up 17.7% to Rs 2.89 bn
The board noted that the 17.7% rise in profits to Rs 2.89 billion was an encouraging performance in view of the difficult operating environment. (Image: First African)
MCB Group profits for the half year to 31 December 2014 rose by 17.7% to reach Rs 2,890.3 million, even as the sources of profit remained well diversified.
It may be noted that the combined contribution of foreign-sourced earnings and non-banking activities accounted for nearly 50% of results, in spite of a fall in the share of profit of associates.
The board noted that this was an encouraging performance in view of the difficult operating environment.
Supported by the growth in the loan book, linked notably to international operations, net interest income rose by 6.2% while net fee and commission income increased by 18.0%, with strong contributions from regional trade finance and asset management activities. ‘
Other income’ was up by 25.1% following a growth of 18.8% in profit on exchange.
Operating costs were relatively stable at Rs 2.8 billion and credit impairment charges stood at Rs 436.1 million, which, on an annualised basis, were significantly below the level experienced in FY 2013/14. This represents a reversal of the negative trend of the last two financial years, in line with improved asset quality with a drop of one hundred basis points being observed in the gross non-performing loan ratio over the six months to December 2014.
On future outlook, the half-year results statement noted that, whilst the operating environment is likely to remain challenging for some time yet, the Group seeks to pursue its growth strategy, with due emphasis on its regional involvement across the business clusters.
On current trends and net of non-recurrent items, results for FY 2014/15 are projected to show good progress over those of the preceding year, the report concluded.